Mexican retailer Wal-Mart De Mexico (Walmex) has posted a 49% rise in second-quarter net profit, helped by higher sales and cost cuts.

Walmex, which is majority owned by US retail titan Wal-Mart, posted net profit of 1.46bn pesos (US$127.1m), beating analysts’ average forecast of 1.33bn pesos, reported Reuters.

Revenues rose 10% to 31.69bn pesos for the quarter, while same-store sales for June rose 6.5%.

Last week, Mexico’s competition regulator approved a purchasing alliance between three Mexican retailers aimed at cutting costs to better compete with Walmex.